News: UK-based property company Helical Bar has signed a joint venture (JV) agreement with Healthcare of Ontario Pension Plan Trust Fund (HPP) to redevelop Creechurch Place in the City of London, UK. The new building will comprise of 271,000 square feet (sq ft) NIA of offices set across 17 floors and 2,000 sq ft of retail space on the ground floor. Under the terms of the agreement, both the companies will jointly fund the project on a ratio of 90:10, with Helical Bar acting as Development Manager, for which it will get a promote payment depending upon the successful outcome of the project. The demolition of the ground level has been completed and the redeveloping is expected to start shortly and is due to be completed by Q416.
BMI View: The UK's real estate sector has continued to flourish, particularly in the office and retail segments, following the property crash and two years of negative economic growth, in 2008 and 2009. There have been numerous acquisitions in office space and a plethora of big-ticket retail projects entering the pipeline, many of which are outside London, bolstering investment potential, particularly from foreign sources.